4a. Compute PPE turnover ratios for the most recent 2 years using the ending balances of any balance sheet amounts used in your formula.

4b. Interpret the ratios.

Dec. 31, 2019 Dec. 31, 2018 CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions Current assets: Cash and cash equivalents Marketable securities Total cash, cash equivalents, and marketable securities Accounts receivable, net of allowance of $729 and $753 Income taxes receivable, net Inventory Other current assets Total current assets Non-marketable investments Deferred income taxes Property and equipment, net Property and equipment, net Operating lease assets Intangible assets, net Goodwill $ 18,498 101,177 119,675 25,326 2,166 999 4,412 152,578 13,078 721 73,646 $ 16,701 92,439 109,140 20,838 355 1,107 4,236 135,676 13,859 737 59,719 10,941 1,979 20,624 2,342 275,909 2,220 17,888 2,693 232,792 Other non-current assets Total assets Current liabilities: Accounts payable Accrued compensation and benefits Accrued expenses and other current liabilities Accrued revenue share Deferred revenue Income taxes payable, net Total current liabilities Long-term debt Deferred revenue, non-current Income taxes payable, non-current Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities Commitments and Contingencies (Note 10) 5,561 8,495 23,067 5,916 1,908 274 45,221 4,554 358 9,885 1,701 10,214 2,534 74,467 4,378 6,839 16,958 4,592 1,784 69 34,620 4,012 396 11,327 1,264 3,545 55,164 0 50,552 45,049 Stockholders' equity: Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 695,556 (Class A 299,242, Class B 46,636, Class C 349,678) and 688,335 (Class A 299,828, Class B 46,441, Class C 342,066) shares issued and outstanding Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity (1,232) 152,122 201,442 $ 275,909 (2,306) 134,885 177,628 $ 232,792 CONSOLIDATED STATEMENTS OF INCOME- USD ($) $ in Millions 12 Months Ended Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2017 $ 161,857 $ 136,819 $ 110,855 Income Statement [Abstract] Revenues Costs and expenses: Cost of revenues Research and development Sales and marketing General and administrative European Commission fines Total costs and expenses Income from operations Other income (expense), net Income before income taxes Provisid for income taxes 71,896 26,018 18,464 9,551 1,697 127,626 34,231 5,394 39,625 5,282 $ 34,343 $ 49.59 59,549 21,419 16,333 6,923 5,071 109,295 27,524 7,389 34,913 4,177 $ 30,736 $ 44.22 45,583 16,625 12,893 6,840 2,736 84,677 26,178 1,015 27,193 14,531 $ 12,662 $ 18.27 Net income Basic net income per share of Class A and B common stock and Class C capital stock (in dollars per share) $ 49.16 $ 43.70 $ 18 Diluted net income per share of Class A and Class B common stock and Class C capital stock (in dollars per share) Dec. 31, 2019 Dec. 31, 2018 CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions Current assets: Cash and cash equivalents Marketable securities Total cash, cash equivalents, and marketable securities Accounts receivable, net of allowance of $729 and $753 Income taxes receivable, net Inventory Other current assets Total current assets Non-marketable investments Deferred income taxes Property and equipment, net Property and equipment, net Operating lease assets Intangible assets, net Goodwill $ 18,498 101,177 119,675 25,326 2,166 999 4,412 152,578 13,078 721 73,646 $ 16,701 92,439 109,140 20,838 355 1,107 4,236 135,676 13,859 737 59,719 10,941 1,979 20,624 2,342 275,909 2,220 17,888 2,693 232,792 Other non-current assets Total assets Current liabilities: Accounts payable Accrued compensation and benefits Accrued expenses and other current liabilities Accrued revenue share Deferred revenue Income taxes payable, net Total current liabilities Long-term debt Deferred revenue, non-current Income taxes payable, non-current Deferred income taxes Operating lease liabilities Other long-term liabilities Total liabilities Commitments and Contingencies (Note 10) 5,561 8,495 23,067 5,916 1,908 274 45,221 4,554 358 9,885 1,701 10,214 2,534 74,467 4,378 6,839 16,958 4,592 1,784 69 34,620 4,012 396 11,327 1,264 3,545 55,164 0 50,552 45,049 Stockholders' equity: Convertible preferred stock, $0.001 par value per share, 100,000 shares authorized; no shares issued and outstanding Class A and Class B common stock, and Class C capital stock and additional paid-in capital, $0.001 par value per share: 15,000,000 shares authorized (Class A 9,000,000, Class B 3,000,000, Class C 3,000,000); 695,556 (Class A 299,242, Class B 46,636, Class C 349,678) and 688,335 (Class A 299,828, Class B 46,441, Class C 342,066) shares issued and outstanding Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity (1,232) 152,122 201,442 $ 275,909 (2,306) 134,885 177,628 $ 232,792 CONSOLIDATED STATEMENTS OF INCOME- USD ($) $ in Millions 12 Months Ended Dec. 31, 2018 Dec. 31, 2019 Dec. 31, 2017 $ 161,857 $ 136,819 $ 110,855 Income Statement [Abstract] Revenues Costs and expenses: Cost of revenues Research and development Sales and marketing General and administrative European Commission fines Total costs and expenses Income from operations Other income (expense), net Income before income taxes Provisid for income taxes 71,896 26,018 18,464 9,551 1,697 127,626 34,231 5,394 39,625 5,282 $ 34,343 $ 49.59 59,549 21,419 16,333 6,923 5,071 109,295 27,524 7,389 34,913 4,177 $ 30,736 $ 44.22 45,583 16,625 12,893 6,840 2,736 84,677 26,178 1,015 27,193 14,531 $ 12,662 $ 18.27 Net income Basic net income per share of Class A and B common stock and Class C capital stock (in dollars per share) $ 49.16 $ 43.70 $ 18 Diluted net income per share of Class A and Class B common stock and Class C capital stock (in dollars per share)